Pfizer Trims Guidance

Lipitor is under a different type of generic-drug attack, but it did better than many analysts' had expected. First-quarter worldwide sales rose 8% to $3.36 billion. U.S. sales rose 8% to $2.13 billion even though some analysts had forecast flat or lower U.S. sales. Pfizer attributed most of the sales gain to a price increase.

Lipitor is being pressured by generic versions of Merck's (MRK) Zocor, and, to a lesser extent, Bristol-Myers Squibb's(BMY) Pravachol.

Both lost U.S. patent protection last year, and managed care companies are encouraging patients to choose these generics over brand-name Lipitor. Pfizer said the switch from Lipitor to generic Zocor was "slightly greater than we had predicted."

Although Pfizer has survived Lipitor patent challenges in most major markets, it lost a case in Canada in January affecting a patent due to expire in July 2010. The challenge was filed by India's Ranbaxy Laboratories.

"We have appealed the Canadian decision, which we believe was wrongly decided," Kindler said. Pfizer defeated another Ranbaxy challenge in Canada to a patent due to expire in May.

Aside from the Norvasc case, the biggest disappointment is the inhaled insulin Exubera. Approved by the FDA in January 2006, Exubera has been hit by production delays, marketing delays and a poor response from consumers and doctor response. Analysts have slashed their once-glowing estimates of its revenue potential.